Senior housing site is state-supported ghost town

Future of Birches at Schoharie remains in limbo

Exterior of buildings at Birches at Schoharie on Thursday, Jan. 25, 2018 in Schoharie, N.Y. Birches at Schoharie is a low income housing project which is still in limbo over tax credits. (Lori Van Buren/Times Union) less

Exterior of buildings at Birches at Schoharie on Thursday, Jan. 25, 2018 in Schoharie, N.Y. Birches at Schoharie is a low income housing project which is still in limbo over tax credits. (Lori Van Buren/Times ... more

Exterior of buildings at Birches at Schoharie on Thursday, Jan. 25, 2018 in Schoharie, N.Y. Birches at Schoharie is a low income housing project which is still in limbo over tax credits. (Lori Van Buren/Times Union) less

Exterior of buildings at Birches at Schoharie on Thursday, Jan. 25, 2018 in Schoharie, N.Y. Birches at Schoharie is a low income housing project which is still in limbo over tax credits. (Lori Van Buren/Times ... more

A 72-unit low income senior housing complex sitting vacant in the village of Schoharie remains in limbo as the project's bankers seek to foreclose on the property by next month.

Bank of America is seeking a foreclosure and sale of the Birches at Schoharie, an affordable senior housing project that received state support for its construction in the aftermath of tropical storms Irene and Lee that inundated the village in 2011.

The apartment complex on Main Street at the southern end of the village has yet to open to tenants as the dispute with Bank of America has dragged on. It was granted a certificate of occupancy last year.

Kingston developer Steve Aaron, who has seemingly faced hurdles and legal battles at every turn trying to build the complex, was sued last year by Bank of America, which claimed he fell into default on his $11 million mortgage.

Back in 2013, Gov. Andrew Cuomo announced that New York State Homes and Community Renewal awarded $3.9 million in loans and tax credits to the Birches at Schoharie as part of $91 million in financial assistance to low-income housing projects across the state.

Last month, Bank of American got a state Supreme Court justice to appoint a Boston company as receiver in control of the apartment complex.

A week later, in the Appellate Division of Supreme Court blocked the appointment of the receiver, although the justices directed the company, Tax Credit Asset Management, to "continue to pursue the securing of tax credits" for the Birches of Schoharie from the state.

On Monday, Freeman Klopott, a spokesman for Homes and Community Renewal, said the tax credits had been preserved for future use by Birches at Schoharie. There had been some question in court filings by Bank of America as to whether or not the credits had to be secured by the end of 2017 or not. That question appears to be moot now.

"The receiver has obtained a carryover under Internal Revenue Service regulations for the tax credits, though no one will be able to claim the tax credits until the project is successfully completed," Klopott said. "HCR looks forward to the swift resolution of the dispute between Mr. Aaron and his investor partner so this important project can be brought online as soon as possible and help fulfill a critical need for affordable housing in the Schoharie Valley.

"The project sponsor for Birches at Schoharie will not receive any taxpayer funding until the project is completed to HCR's satisfaction."

The next steps remain unclear. Aaron declined to comment.

Bank of America filed documents in Supreme Court in Schoharie County last week saying it planned to seek a court order on Feb. 1 to foreclose on the property and hold a sale.